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SOEs' market valuation reaches $143 billion: Minister

Jakarta Globe - September 14, 2023

Muawwan Daelami, Jakarta – Indonesian state-owned enterprises (SOEs) are in overall robust financial health, with a combined market valuation surging to Rp 2,200 trillion ($143 billion) from last year's Rp 1,700 trillion, SOE Minister Erick Thohir said on Thursday.

In addition to their financial strength, SOEs have contributed Rp 80 trillion to the state coffers in dividend payments. The government anticipates this figure to rise to Rp 85 trillion this year, Erick said during a hearing with the House of Representatives' Commission VI, which oversees SOEs, at the legislative building in Jakarta.

"We previously discussed a combined debt of Rp 1,600 trillion by state-owned companies, but the current situation demonstrates that SOEs have a combined capital of Rp 3,200 trillion and a market valuation of Rp 2,200 trillion. These figures outweigh the debt," Erick told lawmakers.

During the hearing, the minister unveiled a plan to inject additional capital of Rp 28.16 trillion into state-run construction companies Hutama Karya and Wijaya Karya, as well as state-owned financing firm Indonesia Financial Group (IFG).

Hutama Karya requires additional capital to complete the construction of the Sumatra toll road network, while Wijaya Karya is actively involved in the megaproject to build the new national capital, Nusantara, in East Kalimantan.

Regarding IFG, the company requires fresh capital to resolve financial issues stemming from the past corruption scandal in the state insurance company, Jiwasraya, where its assets were seized by prosecutors, as Erick explained.

Furthermore, the government is set to invest Rp 12.8 trillion in the railway company KAI and an additional Rp 11 trillion in train carriage builder INKA. This investment follows the introduction of new railway systems, including the Great Jakarta Light Rail Transit (LRT) and the Jakarta-Bandung High-speed Train.

Source: https://jakartaglobe.id/business/soes-market-valuation-reaches-143-billion-ministe